After steadily recovering from COVID pandemic, India on Friday went ahead of the UK to become the world’s fifth biggest economy. The calculation is based in US dollars, and India extended its lead in the first quarter, according to GDP figures from the International Monetary Fund.
On the other hand, the UK has dropped behind India to become the world’s sixth largest economy. The UK’s declined international rankings will not be a welcome move for the new prime minister.
In the meantime, Conservative Party members choose Boris Johnson’s successor on Monday, with Foreign Secretary Liz Truss expected to beat former Chancellor of the Exchequer Rishi Sunak in the run-off.
For the UK election, the winner will take over a nation facing the fastest inflation in four decades and rising risks of a recession that the Bank of England says may last well into 2024.
On the other hand, the Indian economy is predicted to grow more than 7% this year. Notably, the Indian stocks this quarter has just seen weighting rise to the second spot in the MSCI Emerging Markets Index, trailing only China’s.
The IMF report further suggested that the UK is likely to have fallen further in terms of economy as UK GDP grew just 1% in cash terms in the second quarter and, after adjusting for inflation, shrank 0.1%.